The US-China Trade War and Its Impact on iPhones Imported From China

The US-China Trade War and Its Impact on iPhones Imported From China

Oct 2018 Market Intelligence & Consulting Institute Telecommunications14 Pages Price :
$ 1500

The US-China trade war is escalating. In the first two rounds of tariffs, the US has imposed duties on a total of US$50 billion worth of Chinese goods, including semiconductor ICs, car parts, machinery, and equipment. The third round of tariffs has brought the total value to US$250 billion. However, Trump has no intention to back down as he has threatened to impose tariffs totaling $500 billion on 90% of Chinese imported goods. Smartphones are likely to be on the list. As Apple has heavily relied on Taiwanese manufacturers for its iPhones, the new tariffs are likely to have a major impact on Apple iPhone's supply chain. This report starts from the background of the incident, examines the impact from the market and supply chain perspectives, and gives a brief analysis of countermeasures of iPhone partners in short and mid-to-long terms.

Table of Contents

1.Background 

1.1 iPhone Likely to Become a Bargaining Chip in US-China Trade War 

2.Impact Analysis 3
2.1 iPhone Accounts for over 42% of the Smartphone Imports in the United States 
2.2 Impact on Supply Chain 

3.Countermeasures 
3.1Short-term Strategy: Adjust Existing Capacity to Increase Production in Taiwan 
3.2 Mid-to Long-Term Strategy: Increase Production Share in South/Southeast Asia 

4.MIC Perspectives 

Appendix 

Glossary of Terms 
List of Companies 

List of Table

Table 1 Tariffs and Prices of iPhone X in Different Countries 
Table 2 Impact of US-China Trade War on Apple’s Taiwanese Partners 
Table 3 Analysis of EMS Providers’ Production Sites 

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